Brexit effect: Indian ultra-rich rush for London property
London property was available at an effective discount of 20 per cent between the EU referendum and October 2019.
Chennai: Indian ultra-high net-worth individuals are making most of the discount available in the London property market due to Brexit uncertainties and weakening pound. London continued to be the most preferred overseas market for Indian UHNWIs and witnessed 11 per cent rise in the number of homebuyers.
London property was available at an effective discount of about 20 per cent, taking into account the currency and price movements in prime central London between the EU referendum and October 2019.
Knight Frank’s London Super-Prime Sales Market Insight-Winter 2019 has shown 11 per cent year-on-year increase in the number of Indian homebuyers in prime London markets in the 12 months to June 2019.
“When compared to investments in Indian markets, the yields for both capital and rental are higher. As the domestic economy hits a slow block, we can expect Indians to continue the momentum of investments in mature markets such as London that offer higher returns and relatively shorter hold period,” said Shishir Baijal, Chairman & Managing Director of Knight Frank India.
According to Anuj Puri, chairman of Anarock Property Consultants, Brexit is seen as an opportunity for hawk-eyed Indian property buyers who have been waiting to take the plunge into the exorbitantly high-priced UK real estate market.
The main areas of interest for Indian homebuyers are Mayfair, Belgravia, Hyde Park, Marylebone and St John’s Wood.
London property market has remained one of the most preferred destinations for wealthy Indians. Knight Frank found that 21 per cent of Indian UHNWIs showed affinity towards purchasing homes outside of their domicile country and out of these UHNWIs, 79 per cent are looking to make property investment in the United Kingdom. This was much higher than the global average and Asian average of 32 per cent.
At 52 per cent, the United States is the next preferred property market and 14 per cent of Indian UHNWIs want to invest in Australia and Singapore. Canada is another preferred market.
The profile of wealthy Indian buyers is becoming younger. Around 73 per cent of super-prime buyers were below 50 in the year up to September 2019, up from less than 50 per cent at the start of 2015.